Five reasons why FaceBook and Business applications are a great match

Last week, I’ve read the interesting post; “Which Problem Is FaceBook Solving? ” by Gadi Shamia. The post raises a puzzle which still remains unanswered. Saying virtual hellos or giving virtual bites was here 10 years ago, so which problem does it solve? The post offered a humoristic, yet correct observation; we are probably too old to know…
But we can assume that since FaceBook is gaining a huge audience, it’s probably solving ones problem (like burning a dead hour).
So, the next natural question is “what can we do with that?” or in other word, how can business applications benefit and use face book?
This post is going to provide why the synergy between FaceBook and business applications is a perfect match.
Product Marketing – new applications, especially one created by small companies, often miss the solution marketing element of “real” customer needs analysis. I’m not talking about surveys but about real interaction with a highly segmented customer, such that represent the typical user of the product (again, explained by Geoffrey Moore). While working for SAP, we used (expensive) techniques like recruiting firms, which many times came up with a “guy” and not with a real typical customer. FaceBook is a cheap way to reach to a huge, detailed, and segmented users-base. Using FaceBook will provide you with information that you would never have imagined that you will have.
Product Definition – the same principle as for marketing, but now for product design, mock-up testing, and alpha product audience. Your life is going to get better if you are producing a SaaS product (e.g. Salesforce.com). You will be able to get to a global audience, which you can segment precisely, examining your application.
CRM – In 1994, I was amazed when one of my colleges which owned a bar, had told me that he is sending “happy birthday” letters for his customers (he had their birthday in his system). For me it looked like amazing customer management. One of the most interesting solutions that I’ve seen is using the platforms of both FaceBook and Salesforce.com to create integration between these two environments. (http://www.thefaceforce.com/) FaceBook will allow you to segment your customers as you have never dreamed. This means efficient and effective campaigns. More than that, you can be very surprised to find your customers in facebook. Just imagine how this “secret” information can help you manage this customer.
Product expansion - Last week, I’ve read about a guy that used the FaceBook platform to develop a real-estate billboard (and also a dating billboard). The endless potential of developing applications which are utilizing the access to the information on millions of people holds also a potential to expand the existing business applications. Just imagine, the HR module of Oracle (or SAP), integrated into FaceBook (to a HR recruiting application created in facebook).
Analytics – The old story about dippers and beer becomes real. There is a famous story about an analysis using advanced statistical methods (data mining), which concluded that men who buy dippers also buy beer. The ability to use FaceBook platform, to access the user base, and then run data mining models is fascinating. You can learn a lot about the customs, and dependencies in the world of millions of users (which you can implement in your product).

Conclusions:
Segmentation – this is a real power that FaceBook brings to the business applications. Every time that you ask yourself “what my customer would have done in case of?” is the time to think how FaceBook can help you.
Expend when you can – the open platform of FaceBook allows you to expend your business application and to reach a huge audience (e.g. a HR recruiting system)
Share and Learn – Share information. Learn from face book: what your customers like? Who can be your future customers? Who is your next competitor?

When Business Application meets Open source

While open source is live and kicking in the world of the operating systems (Linux), it’s presence in the world of the business application is (relatively) in its cradles. There is a growing penetration into the CRM products (SugarCRM), and there are open source ERP systems like http://www.compiere.com/ and http://thingamy.com/. To make sure that we are on the same page with "open source", please have this link. In general, you get the code and often for free (life has never been better. right?). In this post I will share with you my perspective on this interesting synergy (ERP and open source). I will use a simplistic CIO point of view scenario (and a humoristic approach):

Mickey, the CIO of a Greece company has lost his support for the old legacy system and is about to go for a new ERP system… Mickey discovered an interesting post from a cool guy about open source ERP. He finds that by using “WTH open source ERP” he can save 1million$ for not buying the “traditional” solutions (SAP, Oracle). Additionally, he reads about the power of the fast growing communities of users. Mickey goes to the CEO and explains how he can save 1M$. The CEO is too busy with the new production line and the deal is approved...

Mickey finds that there is no Greece localization for WTH. But there is a great (yet small) software group that is just writing localizations. Mickey pays 100K$ and gets the localization. He finds that WTH misses some needed functionality that, so he recruits 2 new developers. Mickey also invests 1M$ in new hardware.

Since there are not too many consultants around knowing WTH; Mickey is using some SAP veterans. The implementation costs 3M$. After one year, the system goes live

Luck is about to change. His key developer has just resigned (but that’s fine. All is working and Mickey gets some help from the Web).

Friday eve, and it’s shipping time. Mickey gets a phone (at home). There is a problem to print a delivery note. “Check the damn printer” Mickey tells the guy in the warehouse. Then, a call from the plant manager telling Mickey that some of the delivery transactions are not recorded. Mickey goes to the factory.

It’s 10PM and there are 25 trucks outside the factory. Mickey calls his developers + the consulting firm. No luck. It’s 3AM and the trucks just left. Shipments are delayed (5M$ lost).

Mickey looks into the blogs. The cool guy that told him about WTH is not there. He logs into the WTH site and finally manages to talk to someone that explains him that professional help can be reached only on Monday. Mickey doesn’t sleep for two days..

It seems that the problem grows and there is also a problem with work orders so the production people are going home. Finally he gets a call from WTH. When they try to analyze what happened, it seems that there is a lot of new code now and it’s hard to figure a solution. WTH have sent a person to the site (10K$). After 3 days (and 3M$ lost) it seems that one of the programs written by his developer was causing a major bug.

The CEO’s reaction to the long explanation is “WTH (What the hell) were you thinking when you’ve taken an open source to run our planet?”

Main conclusions:

1. Total Cost of ownership - The cost of the product is the small piece in the TCO of ERP. Implementation and hardware will always be there, even if you go for the open source.
2. User interaction- Not like operating systems, Business applications are not “one size fits all”. This means that business flexibility requires technological flexibility (e.g. configuration) which increases the chances to get hit. The more your user is playing with system, the greater the chances that bugs will emerge.
3. Core role - In most of the cases, your ERP (or CRM) is not just an enabler. Check if it’s part of your “core” (nicely explained by Geoffrey Moore). Don’t go for the open source if it’s part of your core.
4. There are no free meals - Quality and service cost money (even if the cool guy from the blog tries to convince you that it doesn’t)
5. Ecosystem - the community of the current solutions is not something to underestimate. There are millions of users that have a huge influence on the software provider (SAP, Oracle). Will you have a real say in the world of the open source?
6. Don’t buy the cliché – Open source systems are not simpler just because they are "open source"...